On the Association of Capital

Venture capital or private equity investment is only part of Mr Liu's overall plan to forge Lenovo's industrial kingdom through future direct investment. For the rumors of a long "retirement status", Lenovo Holdings president Liu is helpless, "really have the day to play golf." He interviewed the Chinese version of Forbes in the executive suite at the Westin Shanghai, and CCTV's economic channel followed up for a mirror.　　The next trip is to Pudong to participate in the 4th phase of Lenovo Investment fund signing ceremony, and then rushed to the Oriental TV "very memory" of the recording site, where there are Lenovo employees and his "fans"-short "Liusi" waiting for him. The 64-year-old entrepreneur has been busily presented to the public in a variety of promotional campaigns about the 30-year anniversary of China's reform and opening-up. All this has been a desire to serve the motherland Liu is pleased. At the same time, Lenovo holding the future big picture of the determination also let him excited. July 14, Lenovo Holdings and the Chinese Academy of Sciences co-founded the Association of the official opening of the school, the first class is Liu held to speak of "how the President tempered." In this College of Business management as a teaching content, the trainees are 30 scientists from 143 scientific research projects recommended by the CAS. "Most scientists do a good job and don't necessarily understand the link between a scientific research and a product being sold into money."　　"The Chinese Academy of Sciences, a calculated Liu, wants to tell the scientists about Lenovo's experience." This is because Mr Liu wants to set an example through his own power to change the current state of China's technology industrialization that makes him "grind his teeth", but it also means a lot to Lenovo itself.　　Through Lenovo College, Mr Liu is adding the most front-end hatch to Lenovo's investment-industry chain. In Lenovo's existing investment industry, Lenovo investment is focused on large it and early investment venture capital companies ("VC"), and Hong-Yi investment is focused on the investment of mature industries forming enterprises Private Equity Investment Fund ("PE"). "So the benefits to Lenovo's investment are too great, and the most important thing to invest in is to choose a good project and get a high return, but the stakes are high and it may be how many can be selected." Hatching investment is small, you can see the good project, better understanding, the emergence of the star project grasp greater, to a certain extent by Lenovo Investment took over, can also be Yu Hongyi to the listing.　　Mr Liu describes Lenovo's capital road map. Liu is accustomed to setting a goal after a goal is achieved. So what is Lenovo's next target? While Mr Liu laughs that the next 6-year development plan for Lenovo Holdings is not yet disclosed, it is certain that "Lenovo's next step is to invest directly outside the Hongyi of Lenovo's investment."　　Lenovo's direct investment will also introduce new leaders, he said. VC and PE Investment Fund is a partner system, the request must exit regularly. In 7, 8 years later, even if the investment enterprise in the future has a better development prospects still have to exit. In Liu's viewIt's a big disappointment, and direct investment without regular return restrictions can make up for it and achieve long-term ownership of good companies. and direct investment will also constitute Lenovo capital already has the next link in the industrial chain, priority take over Lenovo investment Hongyi investment exit outstanding enterprises. At present, Lenovo Investment Hongyi has such potential companies.　　"said Mr Liu. Countless capital is flocking to China's private equity fund.　　According to the Chingko Research Center, the number of private equity funds that were raised in China in 2007 amounted to $35.584 billion trillion, up 150.7% from a year earlier, and will remain high for the first two quarters, up to $32.018 billion trillion. It would be wrong to think that Lenovo and other equity funds are just trying to get financial returns. Through direct investment, Mr Liu will take a step further, from pure investment to the combination of capital and industry platform to build, and to support Lenovo holding the future development of the new industry pillars. "If we are optimistic about the enterprise, can be like Lenovo Group to become a pillar enterprises do not quit, like Li Ka-shing to do the Yangtze River industry."　　"said Mr Liu. With 24 of computer manufacturing, 8 years of investment, and direct investment in the future, Mr Liu is moving out of a cycle of integration from industry to capital. "The first two phases are in fact the preparation of our next strategy," he said. "The step-by-step, layered bedding is always the expansion of the logic of Liu." It is clear that in Mr Liu's mind, it is his ultimate goal to forge Lenovo into a large diversified group like the Yangtze River industry and GE. The current equity investment is to explore these new industries. Previously, Lenovo had tried to diversify directly through its diversified operations, but it was not successful. Now it is becoming clear that the diversification of Lenovo's holdings is being achieved through diversification of investments.　　Through the early intervention of venture capital, Lenovo can use small investment to intervene in these unfamiliar industries, and when they are really familiar with them, they will hold a part of Lenovo industry for a long time, thus greatly reducing the risk of diversification. 1984, the Chinese Academy of Sciences, the computer science and technical personnel of the founder of the Lenovo 200,000 Yuan, 10 years after Lenovo Group listed in Hong Kong, 1996 became the largest computer manufacturers. In 2000, Mr Liu felt ill and decided to shift Lenovo's computer career. He will be the agent and system integration business from Lenovo Group split out by Guo for control, the new company named Shenzhou Digital, and Lenovo's own brand business to the Yang. "At that time I felt myself honed in the market for so many years, all of a pity." At the same time from the shareholder point of view, only to do it is not satisfactory return, the risk is too big.　　"Liu chose venture capital as the new direction of Lenovo Holdings, led by him and the lesser Shuai Zhu Linan to set up Lenovo investment." Mr Liu believes that the accumulation of manufacturing is crucial to Lenovo's investment: first, money, then reputation, and then Zhu Linan, who are born in business and understand the workings of the business, and last and foremostExperience。 Liu is very fond of "pan" thinking, every fight, regardless of success or failure, always like to repeat the process after the end, summed up the experience. "Encounter too inappropriate situation or particularly suitable circumstances, there must be a summary of the place," waiting for the elevator in the air, he still to interview the location of the arrangement is not expected to explain to reporters, "big things are the same." "This is the High-tech start of the association for how to make a small business from a scientific and technological achievements to a large enterprise is certainly quite a research." These all constitute the development basis of Lenovo investment.　　A few days ago, Lenovo Investment completed the fourth phase of the 400 million dollar fund-raising, management of the total funds reached 700 million U.S. dollars, investment projects of 70. "The rate of return of the first fund, which is already maturing, is about 3 times times, and now it looks like the next two will be better." "Although Mr Liu is satisfied with the results of Lenovo's investment, venture capital funds are at least 1 billion or 2 billion of the size and far from what he wants," he said. The 2003 Communist Party of China 16 proposed to further promote the restructuring of state-owned enterprises, he decided to seize the opportunity to enter PE. Our origins are state-owned enterprises, and then after the joint-stock reform, we are more interested in state-owned enterprise restructuring, but also understand the existing problems and solutions. At the same time after 3 years of investment experience, the investment has a certain understanding. "Mr Liu has thus set up a focus on corporate mergers and acquisitions of Hong-yi investment.　　The first fund raised 38 million of billions of dollars only for Lenovo Group, and 5 years later, the four-year fund was not only raising 1.4 billion dollars and 5 billion yuan, but was also funded by the international financial giant and China's most representative institutional investor, China's Social Security Fund. Mr Liu does not consider himself a qualified investor, because he did not understand the choice and implementation of specific investment projects, the details of investment projects he is not involved in many, in the fourth period of Lenovo Investment Fund, he even gave up his own vote, no longer a member of the Investment decision-making committee. But in the opinion of Lenovo Investment President Zhu Linan, Mr Liu is no doubt called an "investor". "It's just that he's a higher-level investor, and he's more about asset allocation and fund control from a company perspective, and his impact on the company is focused on industry, direction and ideas."　　"Zhu Linan said. In Liu's investment thinking, he is the first heavy investment strategic route choice, "to bring value for the enterprise" is his insistence on the idea. Secondly, in the choice of the enterprise, it is "things first, people heavy", that is, in the order of choice, the first thing to see is the prospect of the investment industry and enterprise fundamentals, but in importance, the team is the most important. "Not all people can be value-added, caged in the not necessarily good tigers, but also may be sick tigers or not tigers." If there is no suitable person, the project would rather not do it. "said Liu. Finally, the implementation of the route selection is equally valued by him. When Hony joined Hong Yi's investment, Mr Liu was worried: "The young people who come back from the United States always like to exaggerate themselves a bit, but luckily he quickly adapts." "The initial period of Hong Yi has been LiuShoot a good project, because the investment team did not want to quit the problem when they decided to invest. "Not to say ' no retreat '?" Since it is a prerequisite, why don't you think about it? "In the face of the project, Liu is not polite to the investment team," This is not so much a thorn in the project, but rather a team of thorns. At that time I was very attached to them as a new formation team is not in accordance with their principles. "Our investment is different from other financial investors, many of them are selling at low prices, playing the role of price, we are value creation." Through their own resources, mainly to manage resources, to help enterprises, but also to obtain returns.　　"Mr Liu, who was born in 1944, has a deep industry-country scenario, and he expects to leave Chinese business with a sense of improving business management and nurturing talent, and the best way to put these management experiences to work in a larger context is to invest. The Chinese glass is a project in which Liu was involved in the early stage of investment in Hong Yi. The small glass Factory, originally located in Suqian, Jiangsu Province, was originally a state-owned enterprise called "Jiangsu Glass". 2004, Hong Yi with more than 8,000 million assets, and then introduced a number of production lines, to achieve large-scale after the success of the "Chinese Glass" name listed. followed by the listing of financial resources, Chinese glass began the domestic glass industry integration, has acquired 11 production lines, in the acquisition of Shandong Blue Star, Hong Yi repeated Lenovo annexation IBM computer "Snake Swallow Elephant" drama. 2007 after the completion of the industry integration of Chinese glass from Hong Yi entered the two production lines, into an annual turnover of 2 billion yuan, net profit of nearly 140 million yuan of the industry's largest plate glass listed companies. But the value of Hong Yi has not ended, and then the world's largest glass manufacturers Pilkington shares as an opportunity to introduce Australia's high-end solar glass production line. In order to overcome the domestic glass enterprise periodicity, Hong Yi once again to China's glass to the international market. "While the profitability of the international market is not as high as at home, it has the ability to tame the volatility of financial statements, which is important to enhance shareholder confidence."　　"In Mr Liu's view, such a scale of value promotion and capital operation capacity is not what the average investor can have." In the current Lenovo Holdings, investment is already a very important part. Lenovo's 45% per cent stake in the company was 218 million dollars in 2007. "Even though the project has not yet been fully withdrawn, the value of the investment is almost as profitable as it is," he said. And this part of the future growth will be even more rapid, "Mr Liu is confident of Lenovo's future," TPG (Texas Pacific Group) was founded when the U.S. economy is very mature, there is no such a broad prospect of China, at that time they did not have our good reputation in the United States. Their size is so big, we will be better than them in the future! ”